After immense pressure from activists and civil society groups, Jordan said that it would be reclaiming al-Ghumar and al-Baqura after ending its lease agreement with Israel.
According to the 1994 peace agreement, Israel was leased 405 hectares of land so that Israeli farmers could use the water-rich farmland for at least 25 years.
The King said: “We have informed Israel of an end to the application of the peace treaty annexes regarding al-Baqura and al-Ghumar.
“Al-Baqura and al-Ghumar have always been on top of my priorities.
“Our decision is to end the annexes of the peace treaty based on our keenness to take all that is necessary for Jordan and Jordanians.
“Al-Baqura and al-Ghumar are Jordanian land and will remain Jordanian.”
The deadline to renew the lease is October 25.
Israeli Prime Minister Benjamin Netanyahu said that Israel would reach out to Jordan in order to negotiate an extension on the leases which are set to expire next year.
He said: “We will enter into negotiations with Jordan to option an extension of the existing lease agreement.”
So far it is unclear how and when the territories will be returned to Jordan.
Israel has controlled the territories since 1948.
King Abdullah’s announcement comes after immense growing pressure from the public, activists and MPs within the Jordanian government.
According to Jordanian MP Khalil Atiyeh, a week ago, 85 Jordanian MPs signed a petition calling on the King not to renew the lease agreement.
A political analyst in the Jordanian capital of Amman, Oraib al-Rantawi said: “The King saw the popular rejection against keeping this agreement with Israel, especially in the last few months where economic decline in the country has led to mass protests – and he wisely decided against it.”
Many observers believe the King will receive praise from the Jordanian public for his refusal to continue the lease.
Political activist Hussar Abdallat said the King’s decision would “endear him to the public”.
Former UN environmental official and critic of the Israel-Jordan peace treaty Sufyan al-Tell called the announcement “timely and reflects the will of the people of Jordan”.